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NEWS UPDATES Asean Affairs   February 1, 2019  






Retailers protest high minimum wage, threaten to switch to machines

Retailers are strongly protesting Jakarta Governor Anies Baswedan’s decision to increase the minimum wage for retail workers to Rp 4.29 million (US$306.28) per month, higher than the city's minimum wage of Rp 3.94 million.

The decision was stipulated in Gubernatorial Regulation No. 6/2019 on the provincial sectoral minimum wage. Article 2 of the regulation prohibits employers from paying their workers a salary that is lower than the regulated minimum wage.

Association of Indonesian Retailers (Aprindo) deputy chairman Tatum Rahanta called on the Jakarta administration to be more careful in making decisions on wages.

“Retail is a labor-intensive business that employs large numbers of unskilled workers. Therefore, we want to meet [with the governor] to explain everything,” Tatum said in Jakarta on Wednesday as quoted by kontan.co.id.

If the city insisted on defending its decision, he added, retailers might need to lay off workers and replace them with automated machines to make business more cost-efficient.

“We are considering modernizing our operations by replacing the workers with automated machines. We will reduce our number of workers and replace them with technology. It will be more efficient,” he added.

He explained that, for convenience stores, retailers had to allocate 30 to 40 percent of their revenue for wages, while for supermarkets and department stores, the percentage was often higher.


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ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


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